Probate: 12 Questions to Know When Getting a Tax ID Number for a Trust or Estate

One of the first practical steps in estate administration is obtaining a tax ID number, also known as an Employer Identification Number (EIN), from the IRS. This number is used to file estate tax returns, manage estate bank accounts, and conduct financial transactions on behalf of the estate. The IRS online EIN application assistant asks 12 specific questions, and answering them correctly is essential.

Question 1: Type of Organization

The first question asks what type of entity is applying. For probate purposes, select "Estate." If you are applying for a trust that was created after the person's death, select "Trust" instead. The distinction matters for tax filing purposes.

Question 2: Type of Trust

If you selected trust in Question 1, this question asks whether the trust is revocable or irrevocable. For trusts created after someone's death, the answer is typically "Irrevocable." A trust that becomes irrevocable upon the grantor's death is treated as a separate tax entity.

Questions 3 and 4: Responsible Party

These questions ask for the name and Social Security number of the living person who will be responsible for paying the estate's taxes. This is typically the executor or personal representative. The responsible party must be a living individual, not the estate itself.

Questions 5 and 6: Authority

The IRS asks whether the person filling out the form is the executor, trustee, or someone with permission to do so. If you are the named executor in the will or have been appointed by the court, you have the authority to apply. If someone else is applying on your behalf, they need proper authorization.

Questions 7 and 8: Details of the Estate

These questions ask for specific details about the estate, including the county where the decedent lived and the date of death. Having the decedent's death certificate and will available when applying streamlines this process.

Questions 9 and 10: Filing Period

The IRS asks about the preferred tax filing period. The estate can choose between a calendar year (January through December) or a fiscal year (12 months starting from the date of death). This choice affects when tax returns are due and should be made in consultation with an accountant.

Questions 11 and 12: Review and Submit

The final questions allow you to review all entered information before submitting. Take the time to verify every field. An error in the EIN application can cause delays in opening bank accounts, filing tax returns, and conducting estate business.

This guide is designed to help fiduciaries navigate the IRS EIN application process during what is often an emotional and stressful time. If you need assistance with estate administration or probate real estate, reach out for a consultation.